The State of the Casino Industry Post-COVID
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When global socio-economic crises hit, the industries that receive the biggest hits are travel, leisure, and entertainment. That was what happened during the COVID-19 pandemic. Due to governance and public fears, the casino business experienced a huge and dramatic shift. This was a worldly event, and as such, gaming establishments all over were affected.
What Can We Expect in the Gaming Industry Post-COVID?
The casino ecosystem is looking at expansion, fixing inefficiencies, and major acquisitions and partnerships as a direct or indirect result of COVID. These are happening at a pace none expected, and companies are racing to come out on top. Let’s look at a few areas of change.
Online casino companies are posing a real threat to traditional land-based operations. At the start of the pandemic, iGaming institutions were already seeing steady growth. However, as travel depleted and fears of the virus rose, resulting in people looking for home entertainment, online gaming achieved a dramatic rise in players and action.
In places where online gaming is legal, like Atlanta City, traditional operators embraced it (as well as sports betting) as much as possible. As a result, they are seeing doubling internet gambling revenues compared to before the pandemic.
To recoup the losses in tax revenue, state governments are looking to other sources of income. Because of that, they are becoming more receptive to allowing sports gambling. Brick-and-mortar casinos are taking advantage of this, and in doing so, expanding their player population. As a result, states like New Jersey and Colorado are seeing significant income increases.
Younger folks, constantly connected to their mobile devices, will also see the attraction of playing various games when they’re on the move. Therefore, sports betting will bring a new generation of players to the casino ecosystem.
Partnerships
Seeing the promising future of iGaming, casinos, media, and sports entities are coming together with the intent of growing viewership and fan engagement. Examples of these partnerships include Bally’s and Sinclair Broadcasting, PointsBet and NBC, as well as BetMGM and Yahoo.
From the viewpoint of media companies, sports betting provides a new avenue for diversification. The whole idea is a higher level of engagement, which lengthens the consumer lifecycle. Put simply, the path to more subscriptions lies in cementing deals with iGaming companies.
Casino Design
It’s no surprise that casinos are a breeding ground for infections. People are moving from table to table, touching cards, pressing buttons, and so on. Therefore, land-based establishments are coming up with smart ways to reduce the spread.
While many are practicing the obvious measures like physical distancing and sanitizing, others are taking additional steps. Some are designing gaming surfaces with antimicrobial features or integrating hands-free technology into their facilities. This includes the installation of automatic faucets and doors.
Contactless payments and mobile bookings and registrations are continuously being adopted by casinos. In the future, we should also see a bridge between physical environments and digital interfaces. This means making use of our mobile devices to somehow mimic the actions of picking up cards or throwing dice.
For example, the Jamul Casino in San Diego is partnering with Konami Gaming to bring cashless transactions to its establishment. Players can sign up and manage their accounts online or using an app, further minimizing the need for human interaction and queuing up at the counter.
Although the COVID-19 pandemic hit the land-based tribal casinos hard, it did not stop them from seeking out new opportunities. After wanting to expand for more than a decade, the Mashantucket Pequot Tribal Nation partnered with LionGrove to reopen the iconic El San Juan Casino, Puerto Rico, as the Foxwoods El San Juan Casino.
The expansions are happening throughout Asia as well. For example, the Mohegan Tribal Gaming Authority recently obtained additional development time for its project in Incheon, South Korea. Inspire Entertainment Resort aims to bring the tribe to new heights.
The Battle for Talent
The global casino industry saw many challenges as a result of COVID-19. Many closed down, resulting in lost jobs. Now that gaming establishments are in full swing, the issue is staffing. The rush to re-employ employees is making things very competitive.
In order to fulfill staffing needs, Eureka Casinos established hiring bonuses, flexible hours, and dual rates. Other companies are even offering stock options to give employees an owner’s mindset. The idea is to keep staff happy to increase retention.
As the Storm Clears
The pandemic wreaked havoc on many of us, and the casino industry was not spared. However, through persistence and diversification, the companies in this field are seeing massive growth post-COVID. Integrations with the digital realm and sports betting are a big part of this expansion. It’s no wonder that gambling revenue saw all-time highs in 2021. People are just hungry to be back at the tables once again.
